The Federal Government has announced plans to implement reforms in the telecoms sector, following a historic investment of $191m in Foreign Direct Investment in the first quarter of 2024.

This investment surpassed the total FDI for the entire year 2023, according to the National Bureau of Statistics data on capital importation released last week.

The Minister of Communications and Digital Economy, Bosun Tijani, expressed optimism about building on that momentum, stating that the government’s reforms would focus on stimulating inclusive growth in the digital economy and broader economy.

“As we start the second half of the year, I’m looking forward to building on this momentum, supported by the necessary reforms and policies that President Bola Tinubu is putting in place to stimulate inclusive growth in the digital economy and the broader economy,” the minister said in a statement obtained on Monday.

The minister noted that the telecom sector, a longstanding pillar of the country’s economic progress, was driving growth and propelling the country forward.

He attributed the growth to confidence in the sector’s potential and the hard work of ICT stakeholders.

“This growth in FDI is about confidence in the potential of our sector and a reflection of the hard work that all ICT stakeholders have put in to ensure that we reverse the slowdown in our sector so that it remains a catalyst for growth,” Tijani averred.

However, the sector faces challenges, such as multiple taxation and instability in the foreign exchange market, which have discouraged further investments.

Pundits believe that to sustain the growth of the sector and attract more FDI, the government needs to address these issues and create a more conducive environment for investors

In 2023, telcos paid N2.4tn tax to the Nigerian government, according to the Groupe Special Mobile Association.

The two biggest operators by subscriber base in their respective financial reports declared losses.

Airtel recorded a loss of $151m in the first quarter of 2024, while MTN Nigeria lost N137bn in 2023.

The President of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, said operators may not survive year-end should the current economic hardship persist.

“Telcos have been running at a loss, even though they may be reluctant to disclose,” the ATCON boss told The PUNCH in April.